An existential threat looms over several US chips companies. And China is just one of its problems

Several US companies involved directly in the integrated circuit industry are suffering. Some of them, in fact, They are flirting with bankruptcy. In this context it is inevitable not to think of Intel and The difficult stage that crosses Currently, but from the company Led by Lip-Bu Tan We have spoken a lot in recent months. The companies in which we are going to investigate in this article are smaller, but, even so, they play a very important role in the US chips industry.

The worst is happening is, without a doubt, Wolfspeed. And this company of Durham (North Carolina) It has officially declared in bankruptcy. Its specialty is the development and manufacture of silicon carbide (sic) and gallium nitride (GAN) semiconductors for high -power electronics applications, which positions them as extraordinarily attractive integrated circuits for the electric car industries, renewable energy, data centers, fast -charged infrastructure and aerospace and military industries.

Robert Feurle, the general director of Wolfspeed, has declared That “after evaluating the options available to strengthen our balance and adjust our capital structure we have decided to take this strategic step (declare in bankruptcy and look for new financing routes) because we believe that it will place Wolfspeed in the best possible position for the future.” An interesting note before moving forward: Spain has launched The Godic project with the purpose of contributing to the independence of Europe of silicon carbide semiconductors from China and the US.

China is not the only cause of the problems of American companies

Wolfspeed is not at all the only company in the US chips industry that is in difficulties from a financial point of view. The American subsidiary of the Israeli company Tower Semiconductor, Globalfoundries, on semiconductor, Skywater Technology or Ayar Labs are some of the companies that are also facing economic difficulties. The competition from China is subjecting them to a pressure that does not cease to increase, but the competitiveness of Chinese companies is not the only factor that is putting in trouble some US chips companies.

Tariffs linked to Imports from China which has deployed US administration seeks to protect the business of US companies within your market. However, most of the companies that I have mentioned in the previous paragraph also sells their semiconductors outside the US. And the competitiveness of Chinese companies in other markets is very high due mainly to two crucial factors: their prices are moderate thanks to contained production costs and the quality of their products is comparable to that of their western and Asian competitors.

In any case, the economic problems faced by some designers and manufacturers of American chips do not have their origin solely in China’s competition. Wolfspeed is at a very delicate moment because, beyond the pressure exerted on it, its Chinese competitors, The global demand of the high -power semiconductors it produces has fallen.

In addition, during the last five years He has borrowed To be able to build new integrated circuit factories, and currently you cannot assume this economic burden. The panorama of other US companies that are dedicated to chips is not very different to the context with which Wolfspeed is dealingso it is possible that in the short or medium term other companies also enter in bankruptcy.

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